pre-orders‑2
What are pre-orders?
When a customer places a pre-order, they’re purchasing an item that has not yet been produced, meaning they’re essentially ‘reserving’ those items in advance. Customers pay in full at checkout, so the money made in pre-orders is then used to finance the production of the goods.
For the customer, placing a pre-order is nearly the same as placing a regular order, though delivery times on the product may vary. For businesses, selling goods on pre-order comes with a number of distinct advantages.
Pre-orders have long been used by businesses as a marketing tactic to generate buzz and excitement around a brand, but they’re also a valuable selling tool. In taking pre-orders, businesses can take advantage of better economics with the ability to forecast demand, lower overhead costs, and increase revenue.
What are the benefits of taking pre-orders?
Businesses of all types can benefit from taking advantage of pre-orders. Many e‑commerce businesses operate solely online on a pre-order basis. Other brick-and-mortar businesses may take pre-orders to promote specials or tame ordering surges around the holidays.
Limit risk: Selling physical goods involves financial risk, but pre-orders are a method of validating products. When a customer places an order before you’ve produced it, you’ve been guaranteed funding before investing time or money into that idea. This also enables you to expand your offerings often without the risk of sunk costs.
Minimize costs associated with inventory waste: Before you order an excess of inventory that goes to waste, take pre-orders during a set time frame. Once orders are in, you’ll know the exact quantities you’ll need to buy to meet demand and avoid any unnecessary inventory waste.
Boost sales: Pre-orders uncover your best sellers in advance. Use this data to further promote your best products in real-time. It’s a fool-proof way to draw in new customers, and you can use text marketing to quickly get the word out. The end result? Maximized revenue and increased brand awareness. Plus, by taking pre-orders, you can expand your offerings before you invest in inventory – eliminating the risk of a costly mistake. Get creative, you never know what might be your next hit.
Customer convenience: Happy customers are loyal customers. And, in general, the more convenient it is to place an order from you, the more orders you’ll get.
Seller convenience: The customer isn’t the only one whose life gets easier with preorders; yours does too! We’re sure you’re no stranger to the holiday ordering surge, and the impact it may have on your ability to produce consistent, high-quality products. With pre-ordering, you can establish an organized schedule ahead of time and avoid that craze and angry customer phone calls altogether.
